Blore Corporation reports that at an activity level of 7,300 units,its total variable cost is $511,803 and its total fixed cost is $76,650.What would be the total cost,both fixed and variable,at an activity level of 7,500 units? Assume that this level of activity is within the relevant range.
A)$604,575
B)$602,475
C)$596,514
D)$588,453

Question

Quizplus · Accepted Answer

Variable cost per unit = $511,803 F1F1F1S1F1F1F10 7,300 units = $70.11 unit
Total cost = Total fixed cost + Total variable cost
= $76,650 + $70.11 per unit F1F1F1S1F1F1F10 7,500 units
= $76,650 + $525,825
= $602,475

Blore Corporation Reports That at an Activity Level of 7,300